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Though difficult for certain types of products, seasonal conditions
have greatly benefited the dairy industry. Up to the end of February
the volume of dairy production was 7 per cent higher than for the
corresponding period of 1951-52. In each of the last three seasons
previous records for the dairy industry were broken, and a new
record is already in prospect.

The favourable financial situation in the Consolidated Fund enabled
the Government last Christmas to arrange a special bonus payment
of £5 for single persons and £10 for married couples within certain
classes of age beneficiaries and war pensioners. A similar bonus
payment will be made by the Government this coming Christmas,
but at the rate of £10 for single persons and £20 for married couples.

Special funds have also been set aside to assist social security
beneficiaries and war pensioners to meet extraordinary expenditure
which cannot be regarded as coming within the usual living costs.

As a result of my Advisers' decision to refrain from raising
loans for Government works, more moneys were available to meet
the capital requirements of local authorities and industry. My
Government proposes to pursue its policy of reducing taxation, in
line with the very considerable concessions made in this field since
1949. Demands for schools, houses, roads, land development, and
electric power, so essential in a young and growing country, seriously
limit, however, the extent to which further reductions can be
contemplated.

Estimates of expenditure will be placed before you for your
consideration in due course.

The building of houses continues to be a major concern of my
Government. Applications by tenants for the purchase of their State
rental houses continue at a satisfactory level, and the sale of the
seven-thousandth rental house was recently completed. The total
value of these sales now exceeds £14,500,000.

In accordance with my advisers’ policy of transferring to the
various producer organizations a greater measure of responsibility
for the marketing of the products of their industries, the Meat Board
will conduct the price negotiations with the United Kingdom
Government for the 1953-54 meat season. Discussions with the
United Kingdom Ministry of Food on the long-term marketing policy
for meat will, however, be conducted by the Government.

My Ministers have taken further steps towards restoring to
private or producer control the marketing of primary products.
From December of this year the Apple and Pear Marketing Board
will be responsible for the distribution of apples and pears. The
New Zealand Poultry Board will set up its own marketing organization
and become responsible for the administration of the Egg Marketing
Regulations. The necessary empowering legislation will be submitted
to you during the current session. The remaining marketing functions,
though important, do not justify administration by a separate
Department of State, and have, therefore, been assumed by the
Department of Agriculture.

A further advance in the development of the country’s hydro-
electric resources was made towards the end of last year when the
first generators installed at Maraetai were brought into operation.
It is anticipated that this station will be working at full capacity of
180,000 kilowatts by about a year from now. Other hydro-electric
power stations are in the course of construction or extension throughout
both North and South Islands, while plant has been imported for
the investigation of the deeper-seated sources of geothermal steam
as power for the generation of electrical energy.

The availability of overseas materials and the improvement in
the labour situation will permit an active programme of public works
to be maintained.

Special attention has been given to questions affecting the welfare
of the Maori people, and a record number of houses has been erected
under the Maori Housing Scheme during the past year. Most